How do I make a correct budget?

A correct budget looks honestly at the money you make, and how you spend it. And the goal? The only goal being that you spend less than you make.

Correct budgets include a list of all income, and a list of all expenses. The goal is to always reach zero.

A good budget can boil down to four things:

  • List all sources of income
  • List all expenses
  • Subtract expenses from incomes to equal zero (zero-based budgeting)
  • Track your expenses through the month

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